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Tag: State Owned Enterprise (SOE)
If you counted every hair on your head, that amount probably will not add up to the amount of times you have read and heard about the causes of the Eskom crisis. Corruption and state capture have been identified as the bedrock reasons why South Africans have been thrown into darkness over the past two weeks. A few people have pinpointed the unions as the cause of the problem because they are enraged about President Ramaphosa’s announcement that Eskom will be unbundled. Yet others have laid the blame on transformation policies, specifically BEE.
Finance Minister Tito Mboweni’s maiden Budget speech is a structural reform budget, which aims to reduce the immediate fiscal and economic risks posed by Eskom’s and other State Owned Enterprises’ (SOEs) unsustainable balance sheets and operational models.
Few currencies matched the rand’s turbulence in 2017, with factors such as Trumpenomics, the firing of finance minister Pravin Gordhan and the appointment of Cyril Ramaphosa as ANC president, contributing to the R2.04 price swing during the year.
Industry grinds to a halt. Traffic stands gridlocked. Lights in dangerous areas go out. People sit in the dark. Whereas Christmas should usher in a time of jovial spirit, this December once again brings in load-shedding for South Africans.
The law is supposed to fulfil two important functions in society: protecting people’s persons and property, and conflict avoidance. When the law steps outside of these functions, the law itself becomes a source of conflict, as we have seen throughout history, especially in contemporary South African history.
Reality can be avoided for only so long. The South African economy has slipped into its first technical recession since 2009. Cyril Ramaphosa’s confidence in growth for the economy has proven hollow. Without a change in the size and the amount of control the state has grasped over the lives of South Africans, without a change in policy from socialism to free markets, this recession was inevitable.
According to recent research conducted by the Small Business Institute of South Africa, local small and medium enterprises (SMEs) are still economically fragile, with approximately 70% of emerging small businesses failing within the first two years of operation.